Secured Card Help

[turts14]

I am getting close to reaching my goal of 640 so I can purchase a house.  I currently have one secured card for $500 and I keep the balance around $40.00 per month.  my question is should I get another secured card or will that hurt my credit right away since I am applying for new credit?  Do they even pull your credit with a secured card?  Also how long util I see my score increase? After the first payment, 2nd, 3rd? 

Thanks I am on my way just need another little push..  FYI I have only two open positive accounts.  1 showing 2 months current payments on a student loan and the other secured card showing 10 monhts current.  Currently at 600 but just had 2 PFD acccepted and having them removed now.  

[Ron1]

When do you need to buy a house?  They need at least 3 TL. Don't apply anything 6 months before you apply for mortgages.

Ron.

[turts14]

In about 3-4 months.  My banker told me that he can use my cell phone bills or rental history in place of the third tradeline to go FHA.  I am hopiong he is accurate

[Ron1]

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@turts14 wrote:

In about 3-4 months.  My banker told me that he can use my cell phone bills or rental history in place of the third tradeline to go FHA.  I am hopiong he is accurate

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Most mortgage companies wanted to see at least 3 tradelines and at least three years of credit history.  I don't know your phone bills or rental history can replace your revolving history.  Anyway, it depends on the creditors. By the way, they also wanted to see bank statements, pay check stubs, income tax returns.

Ron.

[cashnocredit]

The first two CCs help FICO scores right off the bat more than they hurt. Since you only have one CC adding another card will increase your FICO score. Also, do this as soon as possible since your FICO will also go up a bit as the accounts age. For an optimal score, have only one card reporting a balance and the other card reporting 0 balance. Prepay the first card so the balance reported is less than 5%. You only need to do this in time that the balance reports this way on your CR. But this is fine tuning. It's worth it when you go for a mortgage because FICO scores are directly related to the extra interest you pay over the life of the mortgage.

[Repo-ed]

I've had lenders tell me they will accept cell phone and other utility bills as a form of payment history.

[LS2982]

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@cashnocredit wrote:

The first two CCs help FICO scores right off the bat more than they hurt. Since you only have one CC adding another card will increase your FICO score. Also, do this as soon as possible since your FICO will also go up a bit as the accounts age. For an optimal score, have only one card reporting a balance and the other card reporting 0 balance. Prepay the first card so the balance reported is less than 5%. You only need to do this in time that the balance reports this way on your CR. But this is fine tuning. It's worth it when you go for a mortgage because FICO scores are directly related to the extra interest you pay over the life of the mortgage.

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+1

[NikJ4]

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@Ron1 wrote:

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@turts14 wrote:

In about 3-4 months.  My banker told me that he can use my cell phone bills or rental history in place of the third tradeline to go FHA.  I am hopiong he is accurate

---

Most mortgage companies wanted to see at least 3 tradelines and at least three years of credit history.  I don't know your phone bills or rental history can replace your revolving history.  Anyway, it depends on the creditors. By the way, they also wanted to see bank statements, pay check stubs, income tax returns.

Ron.

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if a person has no credit, FHA allows alternative credit such as phone bil, etc.

[Wolf3]

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@turts14 wrote:

I am getting close to reaching my goal of 640 so I can purchase a house.  I currently have one secured card for $500 and I keep the balance around $40.00 per month.  my question is should I get another secured card or will that hurt my credit right away since I am applying for new credit?  Do they even pull your credit with a secured card?  Also how long util I see my score increase? After the first payment, 2nd, 3rd? 

Thanks I am on my way just need another little push..  FYI I have only two open positive accounts.  1 showing 2 months current payments on a student loan and the other secured card showing 10 monhts current.  Currently at 600 but just had 2 PFD acccepted and having them removed now.  

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The 2 PFD deletions will help more than anything to raise your score.

I doubt the 2nd card will increase the score much in a 4 month window.   I think I would trust your broker that you don't need another CC.

The secured card is counted in your score the same as any other unsecured CC.